Data Center Rack Market - Global Outlook & Forecast 2023-2028

Data Center Rack Market - Global Outlook & Forecast 2023-2028

The global data center rack market is expected to grow at a CAGR of 7.42% from 2022-2028.

KEY HIGHLIGHTS

• Sustainability and energy efficiency are becoming increasingly important in the data center industry. As data centers grow in size and complexity, their energy consumption and carbon footprint increase. Hence, there is a growing demand for sustainable data center racks that can help reduce energy consumption and minimize the environmental impact of data centers.
• Edge computing requires data center racks that are lightweight, portable, and easy to deploy in remote locations. These racks must accommodate a range of IT equipment and cooling solutions while being rugged and durable enough to withstand harsh environments. Some vendors are developing edge-specific racks optimized for edge computing workloads, with features such as power distribution units (PDUs) that support multiple power sources and redundant cooling systems.
• The rise of hybrid IT infrastructure, combining on-premises and cloud-based systems, drives the demand for flexible and scalable racks in the data center rack market. Hybrid IT allows organizations to leverage the benefits of both on-premises and cloud infrastructure, providing greater agility and flexibility in managing workloads and applications.

SEGMENTATION ANALYSIS

Segmentation by Product

• Enclosures & Cabinets
• Accessories

Segmentation by End-Users

• Colocation Data Centers
• Enterprise Data Centers

Segmentation by Rack Size

• Below 42U
• 42U
• 45U−47U
• 48U
• Other Rack Units

MARKET TRENDS & OPPORTUNITIES

Increasing Deployments of Edge Data Centers

The increase in edge data center installations is expected to boost the demand for racks in data centers. Edge data centers are smaller and located closer to where data is used, like smart devices and apps. This means there's a need for compact racks that fit well in smaller spaces. These racks might also need to be flexible to hold different types of equipment and help with cooling and power distribution to keep things running smoothly. Moreover, the demand for edge data centers has significantly increased due to increased data generation. As a result, data center racks and cabinets have become essential components of a business's IT infrastructure, thereby supporting the data center rack market growth.

The Procurement of Open Rack Architecture

Open rack infrastructure adoption in data centers has been increasing in recent years, driven by the need for greater flexibility, interoperability, and cost savings. Open rack infrastructure refers to a standardized rack and power distribution unit (PDU) design that enables users to easily mix and match hardware components from different vendors. Hence, standardized rack designs can work with various equipment rather than racks with specific designs that only fit certain things. Using these open racks allows data centers to be more flexible with their equipment, saving money and making operations more efficient. This trend also encourages collaboration among companies to develop improved ideas for racks and equipment.

GEOGRAPHICAL ANALYSIS

The APAC region holds the most significant data center rack market share and is expected to grow with a CAGR of around 8.52% during the forecast period. Within APAC, organizations are constructing high-performance-computing data centers, which is anticipated to increase the demand for cutting-edge, high-capacity racks. China boasts a thriving digital economy, increasing both rack infrastructure spending and support infrastructure investments. Key sectors driving digitalization in the region include e-commerce, real estate, BFSI (Banking, Financial Services, and Insurance), healthcare, and government. Recently, the surging demand for high-bandwidth data services and the global upsurge in internet service usage have triggered an increased adoption of high-capacity racks designed to accommodate multiple servers.

Segmentation by Geography

• North America
• US
• Canada
• Latin America
• Brazil
• Mexico
• Other Latin American Countries
• Western Europe
• UK
• Germany
• France
• Netherlands
• Spain
• Italy
• Other Western European Countries
• Nordics
• Denmark
• Sweden
• Norway
• Finland & Iceland
• Central & Eastern Europe
• Russia
• Poland
• Other Central & Eastern European Countries
• Middle East
• UAE
• Saudi Arabia
• Other Middle Eastern Countries
• Africa
• South Africa
• Other African Countries
• APAC
• China
• Hong Kong
• Australia
• New Zealand
• India
• Japan
• South Korea
• Taiwan
• Rest of APAC
• Southeast Asia
• Singapore
• Malaysia
• Indonesia
• Thailand
• Other Southeast Asian Countries

VENDOR LANDSCAPE

Collaborative alliances between data center operators and rack vendors on a global scale are boosting the growth of the worldwide data center rack market. Numerous support infrastructure providers, including Schneider Electric, Vertiv Group, Eaton, Rittal, and Legrand, offer rack infrastructure solutions within this market. Meanwhile, IT infrastructure providers such as HPE, Dell Technologies, and IBM have joined forces with other vendors to supply pre-installed IT infrastructure solutions to data centers. Revenue generation for these vendors hinges on a combination of factors, including the diversity of their product offerings, product pricing, and the quality of pre- and post-installation services they provide. Furthermore, local and global providers are prominent in the data center rack market.

Prominent Data Center Rack Providers

• Eaton
• Hewlett Packard Enterprise (HPE)
• Legrand
• Schneider Electric
• Rittal
• Vertiv Group

Other Prominent Data Center Rack Providers

• Austin Hughes Electronics
• Beijing Finen Electronic Equipment
• Belden
• Black Box Corporation (AGC Networks)
• Cannon Technologies
• Canovate
• Chatsworth Products
• Cisco Systems
• Conteg
• Cyber Power Systems
• Dataracks
• Delta Electronics
• Enconnex
• FUJITSU
• Great Lakes Data Racks And Cabinets
• International Business Machines (IBM)
• Inspur
• Panduit
• Prism Enclosures
• Rack Solutions
• Rahi Systems
• Retex
• Schroff (nVent)
• StarTech.com
• USystems

KEY QUESTIONS ANSWERED:

1. How big is the data center rack market?

2. What is the growth rate of the global data center rack market?

3. What are the key trends in the data center rack industry?

4. How big is the global data center rack market regarding unit shipment?

5. Who are the prominent rack provider companies in the global data center rack market?